United Tractors Adjusts 2025 Targets Amid Coal Sector Challenges

Revised Operational Projections

PT United Tractors Tbk (UNTR) has revised its operational targets for 2025 downward in response to ongoing challenges in the coal industry. The company recently conducted an Earning Call for Q3-2025 where they presented revised targets for the year and initial guidance for 2026.

Heavy Equipment Sales Adjustments

UNTR has lowered its 2025 sales target for Komatsu heavy equipment from 4,600 units to 4,500 units due to weaker demand for larger equipment sizes amid challenging coal industry conditions. For 2026, the company is projecting sales between 4,300 and 4,500 units, indicating a continued cautious outlook.

Mining Contracting Segment Update

In the mining contracting segment, UNTR has revised its 2025 overburden volume target from 1.18 billion bcm to 1.13 billion bcm, aligning with adjustments in customer production volumes. For 2026, the company expects to maintain or slightly increase this volume compared to the 2025 projection.

Market Context and Implications

The revisions reflect the ongoing challenges in the global coal market, where prices remain volatile and demand fluctuates. UNTR's adjustments demonstrate the company's efforts to manage expectations and adapt to changing market conditions while maintaining operational focus.